Novartis records an 18% increase in revenues in 2006

Novartis Animal Health has reported record sales for 2006, with revenues rising 18% to around US$940m. The result makes it the fastest growing of the top 10 animal health firms.

It moves the company from eighth to fifth position in the global rankings, according to Novartis Consumer Health chief executive Paul Choffat. The exceptionally strong growth over 2005’s result was due in part to the company’s decision to delay its autumn sales offer for US veterinarians until early 2006, which gave a significant boost to first-quarter revenues.

However, on a comparable basis, the company is still expected to have achieved double-digit growth. The main growth driver was the antiparasitic range for companion animals, which performed extremely well both in the US and in Europe, said spokesman Andreas Buehlmann.

The strongest performer was the broad-spectrum anthelmintic Interceptor (milbemycin oxime), but the related products Milbemax (milbemycin oxime + praziquantel) and Sentinel (milbemycin oxime + lufenuron) also made a significant contribution to growth.

A further boost came from the record performance of the farm animal business, Novartis said, which was based on the success of the pig and poultry antibiotic Denagard/Tiamutin (tiamulin) and the cattle vaccine business.

Looking ahead, Dr Buehlmann said the outlook for 2007 was very positive. Novartis plans to continue focusing on the strategic brands which contributed to last year’s growth. A further goal is the integration of Sankyo Lifetech’s animal health business, which Novartis is currently acquiring.

The acquisition gives Novartis a leading position in the Japanese animal health market, and will help secure the supply of the active ingredient milbemycin.